FSSAI Moves to Ban Use of ‘Paneer’ Label on Non-Dairy Alternatives

In a significant regulatory shift aimed at protecting consumer interests and maintaining market transparency, the Food Safety and Standards Authority of India (FSSAI) has issued a draft notification proposing a strict ban on the use of the term “paneer” for analogue dairy products. These synthetic alternatives, which mimic the texture and appearance of traditional cheese made from milk, will no longer be permitted to use the “paneer” nomenclature on their packaging, marketing materials, or menu listings.

Curbing Misleading Practices

Analogue paneer is typically manufactured by replacing natural milk proteins and fats with a combination of vegetable oils, starches, and other non-dairy components. While these products are designed to look and function like authentic dairy, they lack the nutritional profile of genuine paneer.

Under the newly proposed amendment, the apex food safety regulator has explicitly stated that any entity currently licensed under the “Analogue in Dairy Context” category must immediately phase out the word “paneer” from all branding. This directive aims to ensure that consumers are not misled into believing they are purchasing a dairy-derived product when, in fact, they are consuming a plant-based or synthetic substitute.

The regulator defines an analogue product as one where non-milk constituents serve as full or partial replacements for milk-based ingredients, resulting in a finished item that closely resembles a dairy product in taste, feel, and performance.

Rising Scrutiny and Market Impact

The decision follows growing concern regarding the proliferation of synthetic substitutes in the food supply chain. Earlier this year, in April, the FSSAI emphasized that while selling analogue products is legal, mislabeling them as “paneer” constitutes a direct violation of the Food Safety and Standards Act, 2006.

Several states have already taken a proactive stance against the unauthorized sale of these items. Authorities in Madhya Pradesh, Gujarat, Maharashtra, Chhattisgarh, and Uttarakhand have implemented local restrictions to curb the distribution of these analogues in markets and food service establishments.

The impact of this regulatory pressure is already being felt in the digital space. Last month, major food delivery platform Zomato took steps to remove or modify menu items from its partner restaurants that were identified as containing analogue dairy, ensuring that customers are not inadvertently served a non-dairy product under the guise of traditional paneer.

Ensuring Consumer Awareness

According to a senior FSSAI official, the primary objective is to empower the public with accurate information. “The consumer should be well aware of what they are consuming; food businesses have a responsibility to be transparent if they are utilizing analogue alternatives in their preparations,” the official noted.

The regulator has opened a 60-day window following the announcement for stakeholders, industry players, and the general public to submit their suggestions and objections regarding this proposed regulatory change. Once the feedback period concludes, the FSSAI is expected to finalize the rules, setting a new standard for food labeling in India that prioritizes clarity and prevents the dilution of the identity of traditional dairy products.

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